Advanced Search
MyIDEAS: Login

A General Method to Create Lorenz Models

Contents:

Author Info

  • ZuXiang Wang
  • Russell Smyth
  • Yew-Kwang Ng

Abstract

There are currently about two dozen Lorenz models available in the literature for fitting grouped income distribution data. A general method to construct parametric Lorenz models of the weighted product form is offered in this paper. First, a general result to describe the conditions for the weighted product model to be a Lorenz curve, created by using several component parametric Lorenz models, is given. We show that the key property for an ideal component model is that the ratio between its second derivative and its first derivative is increasing. Then, a set of Lorenz models, consisting of a basic group of models along with their convex combinations, is proposed, and it is shown that any model in the set possesses this key property. Equipped with this general result and the model set, we can create a range of different weighted product Lorenz models. Finally, test results are presented which demonstrate that there may be many satisfactory models among those created. The proposed method can be generalized by finding other models with this key property.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.buseco.monash.edu.au/eco/research/papers/2009/0609lorenzwangsmythng.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 06-09.

as in new window
Length: 30 pages
Date of creation: Aug 2009
Date of revision:
Handle: RePEc:mos:moswps:2009-06

Contact details of provider:
Postal: Department of Economics, Monash University, Victoria 3800, Australia
Phone: +61-3-9905-2493
Fax: +61-3-9905-5476
Email:
Web page: http://www.buseco.monash.edu.au/eco/
More information through EDIRC

Order Information:
Email:
Web: http://www.buseco.monash.edu.au/eco/research/papers/

Related research

Keywords: Lorenz curve; Gini index;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Kwang Soo Cheong, 2002. "An empirical comparison of alternative functional forms for the Lorenz curve," Applied Economics Letters, Taylor & Francis Journals, vol. 9(3), pages 171-176.
  2. ZuXiang Wang & Yew-Kwang Ng & Russell Smyth, 2007. "Revisiting The Ordered Family Of Lorenz Curves," Development Research Unit Working Paper Series 19-07, Monash University, Department of Economics.
  3. Ogwang, Tomson & Rao, U. L. Gouranga, 2000. "Hybrid models of the Lorenz curve," Economics Letters, Elsevier, vol. 69(1), pages 39-44, October.
  4. Chotikapanich, Duangkamon, 1993. "A comparison of alternative functional forms for the Lorenz curve," Economics Letters, Elsevier, vol. 41(2), pages 129-138.
  5. ZuXiang Wang & Russell Smyth, 2007. "Two New Exponential Families Of Lorenz Curves," Development Research Unit Working Paper Series 20-07, Monash University, Department of Economics.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:mos:moswps:2009-06. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Simon Angus).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.